Download PDF

1. Company Snapshot

1.a. Company Description

Acacia Research Corporation, together with its subsidiaries, invests in intellectual property and related absolute return assets; and engages in the licensing and enforcement of patented technologies.The company operates through two segments, Intellectual Property Operations and Industrial Operations.The company owns or controls the rights to various patent portfolios, which include U.S. patents and foreign counterparts covering technologies used in a range of industries.


It has executed approximately 1,600 license agreements, and approximately 200 patent portfolio licensing and enforcement programs.It also designs manufactures printers and parts, and consumable products through dealers and distributors for various industrial printing applications.In addition, the company offers supply-chain printing solutions for manufacturing, transportation and logistics, retail distribution, food and beverage distribution, and pharmaceutical distribution industries; and line matrix printers for mission critical applications within labeling and inventory management, build sheets, invoicing, manifests and bills of lading, and reporting industries.


Acacia Research Corporation was incorporated in 1993 and is based in New York, New York.

Show Full description

1.b. Last Insights on ACTG

Acacia Research Corporation's recent performance was driven by strong Q1 2025 earnings and revenue beat, with better-than-expected revenue and earnings due to the company's latest IP licensing windfall. The company's quarterly results showed improved financial performance, with a sum-of-the-parts calculation indicating that ACTG continues to trade at a significant discount to its underlying value. The appointment of Michael Zambito as Chief Financial Officer further supports the company's growth strategy, potentially leading to increased financial discipline and strategic investments.

1.c. Company Highlights

2. Acacia Research's Q3 2025 Earnings: A Resilient Performance

Acacia Research delivered a robust third-quarter performance, with total revenue reaching $59.4 million, marking a 16% sequential increase and a 155% year-over-year surge. Adjusted EBITDA stood at $8 million, while Operated segment adjusted EBITDA was $12.6 million. The company's GAAP net loss attributable to Acacia Research Corporation was $2.7 million, or $0.03 loss per share, compared to a net loss of $14 million, or $0.14 loss per share, in the prior year period. Adjusted net loss was $1.1 million, or $0.01 loss per share, beating estimates of a $0.14 loss per share.

Publication Date: Nov -19

📋 Highlights

Segmental Performance

The energy operations segment continued to perform well, with Benchmark generating $14.2 million in revenue and $6.1 million in adjusted EBITDA. The manufacturing segment, led by Deflecto, reported $30.8 million in revenue, representing a third consecutive sequential increase, and $2.6 million in adjusted EBITDA. The industrial segment, driven by Printronix, generated $6.7 million in revenue and delivered strong performance.

Cash Flow and Balance Sheet

Acacia's cash and cash equivalents, equity securities measured at fair value, and loans receivable totaled $332.4 million at September 30, 2025. The company's total indebtedness was $94 million, with the parent company's total indebtedness standing at 0. The company's free cash flow yield is around 8.47%, indicating a decent return for shareholders.

Valuation and Outlook

With a P/S Ratio of 1.17 and an EV/EBITDA of 0.81, Acacia's valuation appears reasonable. Analysts estimate next year's revenue growth at -37.8%. MJ McNulty's statement that they will continue to generate long-term value for shareholders reinforces the notion that the company is focused on creating value despite macroeconomic headwinds. The company's hedging strategy and operational improvements are expected to drive long-term growth.

Future Plans and Initiatives

Acacia is focused on identifying and acquiring undervalued businesses, leveraging its significant capital base and experienced leadership teams to drive growth. The company is also engaging with existing shareholders, exploring new acquisition opportunities, and presenting at conferences to enhance its investor relations efforts.

3. NewsRoom

Card image cap

Acacia Research Corporation (ACTG) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

Card image cap

Critical Survey: IBEX (NASDAQ:IBEX) & Acacia Research (NASDAQ:ACTG)

Nov -05

Source: defenseworld.net

Card image cap

Acacia Research (NASDAQ:ACTG) and SGS (OTCMKTS:SGSOY) Head to Head Comparison

Oct -26

Source: defenseworld.net

Card image cap

Acacia Research (ACTG) Q2 Revenue Up 98%

Aug -07

Source: fool.com

Card image cap

Acacia Research Corporation (ACTG) Q2 2025 Earnings Call Transcript

Aug -07

Source: seekingalpha.com

Card image cap

Acacia Research Corporation Partners with Unchained and Build Asset Management for a Bitcoin-Backed Commercial Loan Strategy

Aug -06

Source: businesswire.com

Card image cap

Acacia Research: Too Cheap To Ignore, But Tread Carefully Ahead Of Earnings

Aug -05

Source: seekingalpha.com

Card image cap

Acacia Research Corporation Announces Appointment of Michael Zambito as Chief Financial Officer

Jun -24

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.70%)

6. Segments

Intellectual Property

Expected Growth: 10.27%

Acacia Research Corporation's 10.27% growth in Intellectual Property is driven by increasing patent licensing agreements, strategic partnerships, and a growing portfolio of patented technologies. Additionally, the company's ability to identify and acquire undervalued IP assets, as well as its expertise in patent monetization, contribute to its growth momentum.

Industrial

Expected Growth: 4.83%

Acacia Research Corporation's Industrial segment growth of 4.83% is driven by increasing demand for patented technologies in manufacturing, rising adoption of Industry 4.0 solutions, and growing investments in research and development. Additionally, the segment benefits from the company's strategic acquisitions and partnerships, expanding its intellectual property portfolio and enhancing its market position.

Energy

Expected Growth: 4.83%

Acacia Research Corporation's 4.83% growth in Energy is driven by increasing demand for renewable energy sources, government incentives for clean energy, and rising energy costs. Additionally, advancements in energy storage and grid modernization are creating new opportunities for innovative energy solutions.

7. Detailed Products

Patent Licensing

Acacia Research Corporation licenses patented technologies to companies, enabling them to use innovative solutions and stay ahead in their respective markets.

Patent Acquisition

Acacia Research Corporation acquires patents from inventors, universities, and companies, providing a new revenue stream for patent holders.

Patent Enforcement

Acacia Research Corporation enforces patent rights on behalf of patent holders, ensuring that infringing companies comply with patent laws.

Patent Brokerage

Acacia Research Corporation connects buyers and sellers of patents, facilitating the sale and acquisition of intellectual property.

Litigation Finance

Acacia Research Corporation provides financing for patent litigation, enabling patent holders to pursue legal action against infringers.

8. Acacia Research Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Acacia Research Corporation's patent licensing business model is susceptible to substitutes, but the company's strong patent portfolio and expertise in patent monetization mitigate this threat.

Bargaining Power Of Customers

Acacia Research Corporation's customers, typically large technology companies, have limited bargaining power due to the company's unique patent portfolio and expertise.

Bargaining Power Of Suppliers

Acacia Research Corporation has a diversified supplier base, and the company's patent portfolio and expertise reduce its dependence on any single supplier.

Threat Of New Entrants

The patent licensing industry is highly competitive, and new entrants can easily replicate Acacia Research Corporation's business model, posing a significant threat to the company.

Intensity Of Rivalry

The patent licensing industry is highly competitive, and Acacia Research Corporation faces intense rivalry from established players, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.03%
Debt Cost 6.44%
Equity Weight 97.97%
Equity Cost 6.44%
WACC 6.44%
Leverage 2.07%

11. Quality Control: Acacia Research Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Cass Information Systems

A-Score: 5.8/10

Value: 5.1

Growth: 4.7

Quality: 6.8

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
ARC Document Solutions

A-Score: 5.2/10

Value: 5.7

Growth: 3.2

Quality: 4.0

Yield: 7.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Acacia Research

A-Score: 4.4/10

Value: 8.6

Growth: 5.4

Quality: 5.6

Yield: 0.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
BrightView

A-Score: 4.3/10

Value: 6.1

Growth: 5.6

Quality: 5.1

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Civeo

A-Score: 4.0/10

Value: 6.8

Growth: 3.2

Quality: 2.3

Yield: 3.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
SPAR Group

A-Score: 3.0/10

Value: 9.4

Growth: 1.3

Quality: 3.7

Yield: 0.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.7$

Current Price

3.7$

Potential

-0.00%

Expected Cash-Flows